Market Information Friday 31 July 2026

Japan’s yen surged as much as 3% against the US dollar, briefly strengthening from around ¥163 to below ¥158 per dollar, prompting market speculation that authorities may have intervened to support the currency. The move reflects growing concerns about imported inflation, higher energy costs, and pressure on Japan’s bond market, where 10-year government bond yields have approached 3%, while investors remain alert to potential future Bank of Japan rate increases.

The Bank of England kept interest rates unchanged at 3.75% in a 6-3 vote, judging current borrowing costs sufficient to contain inflation for now. However, policymakers warned that renewed geopolitical tensions and higher energy prices could reignite inflationary pressures, with inflation projected to rise from 2.6% currently to 3.2% later this year before gradually moving back towards the 2% target.

Chinese technology-related stocks fell sharply as a global sell-off in AI-linked sectors spread across Asian markets, pushing the CSI 300 down 8.6% for the month, its worst performance since 2016. The decline highlights China’s continued exposure to global technology sentiment and concerns over the sustainability of AI-related investment growth, despite recent efforts to support domestic equity markets.

The 6M Euribor is unchanged at 2.68% compared to previous business day. The 10Y Swap decreased with 2 basis points to 3.18% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.